H2O America (NASDAQ:HTO) Hits New 1-Year High - Should You Buy?

Key Points

• Shares of H2O America hit a new 52-week high, trading as high as $60.57 (last $59.91) on ~87,177 shares; the company has a market cap of ~$2.53B, P/E ~20.7, and 50-/200-day moving averages of $56.73/$51.83.
• Analysts have a consensus Moderate Buy with an average price target of $61.83 (1 Strong Buy, 3 Buy, 4 Hold); the company set FY2026 EPS guidance of 3.080–3.180 while street estimates anticipate ~2.75 EPS for the current year.
• H2O America pays a quarterly dividend of $0.44 ($1.76 annualized, ~2.9% yield) with a ~60% payout ratio, and major shareholder Atlas Infrastructure recently bought 50,385 shares, while institutional investors own roughly 84.3% of the stock.

Shares of H2O America (NASDAQ:HTO - Get Free Report) reached a new 52-week high during trading on Monday . The company traded as high as $60.57 and last traded at $59.9070, with a volume of 87177 shares. The stock had previously closed at $58.05.

Wall Street Analysts Forecast Growth

HTO has been the topic of a number of research reports. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of H2O America in a research note on Thursday, January 22nd. TD Cowen started coverage on shares of H2O America in a research note on Thursday. They set a "hold" rating and a $64.00 target price on the stock. Citigroup upgraded H2O America to a "buy" rating in a research report on Friday, January 9th. UBS Group set a $61.00 target price on H2O America in a research report on Friday, January 9th. Finally, Robert W. Baird began coverage on H2O America in a research report on Friday, March 13th. They issued an "outperform" rating and a $67.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $61.83.

H2O America Price Performance

The business's 50 day moving average is $56.73 and its two-hundred day moving average is $51.83. The firm has a market cap of $2.53 billion, a P/E ratio of 20.73, a P/E/G ratio of 3.00 and a beta of 0.42. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 1.21.

H2O America (NASDAQ:HTO - Get Free Report) last announced its earnings results on Wednesday, February 25th. The utilities provider reported $0.46 earnings per share for the quarter. H2O America had a net margin of 12.81% and a return on equity of 7.08%. The business had revenue of $194.19 million during the quarter, compared to the consensus estimate of $195.73 million. H2O America has set its FY 2026 guidance at 3.080-3.180 EPS. As a group, analysts anticipate that H2O America will post 2.75 earnings per share for the current year.

H2O America Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, March 2nd. Stockholders of record on Monday, February 9th were paid a $0.44 dividend. The ex-dividend date was Monday, February 9th. This represents a $1.76 annualized dividend and a dividend yield of 2.9%. H2O America's payout ratio is currently 60.27%.

Insider Activity

In related news, major shareholder Atlas Infrastructure Partners acquired 50,385 shares of the business's stock in a transaction dated Friday, April 10th. The shares were bought at an average price of $59.06 per share, with a total value of $2,975,738.10. Following the transaction, the insider directly owned 4,582,469 shares of the company's stock, valued at $270,640,619.14. This trade represents a 1.11% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.38% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. New Age Alpha Advisors LLC increased its holdings in H2O America by 0.4% during the 4th quarter. New Age Alpha Advisors LLC now owns 61,651 shares of the utilities provider's stock worth $3,020,000 after purchasing an additional 239 shares in the last quarter. Magellan Asset Management Ltd boosted its holdings in H2O America by 1.3% during the 4th quarter. Magellan Asset Management Ltd now owns 21,849 shares of the utilities provider's stock worth $1,070,000 after acquiring an additional 285 shares during the last quarter. Quadrant Capital Group LLC boosted its holdings in H2O America by 194.9% during the 4th quarter. Quadrant Capital Group LLC now owns 525 shares of the utilities provider's stock worth $26,000 after acquiring an additional 347 shares during the last quarter. MetLife Investment Management LLC boosted its holdings in H2O America by 2.1% during the 4th quarter. MetLife Investment Management LLC now owns 18,331 shares of the utilities provider's stock worth $898,000 after acquiring an additional 379 shares during the last quarter. Finally, Parallel Advisors LLC boosted its holdings in H2O America by 1,020.8% during the 4th quarter. Parallel Advisors LLC now owns 594 shares of the utilities provider's stock worth $29,000 after acquiring an additional 541 shares during the last quarter. 84.29% of the stock is owned by institutional investors.

About H2O America

SJW Group, through its subsidiaries, provides water utility and other related services in the United States. It operates in Water Utility Services and Real Estate Services segments. The company engages in the production, purchase, storage, purification, distribution, wholesale, and retail sale of water and wastewater services; and supplies groundwater from wells, surface water from watershed run-off and diversion, reclaimed water, and imported water purchased from the Santa Clara Valley Water District.

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